American Enterprise Institute Resident Fellow Desmond Lachman is an excellent forecaster and describer of economic trends and their likely consequences. I know Lachman has a reputation as a bear, but having had the privilege to meet him several times I can tell you he does not come across as a personality riven by bombast or paranoia.
That makes his latest article – appropriately titled “Lurking Dangers” – all the more scary.
After reading the first half of the article – which explains the risks to Europe and the euro posed by the recessions in Eastern European countries, Greece, and Ireland – it is depressing to read Lachman’s analysis of the looming commercial real estate crash and subsequent regional banking crisis that he foresees in the United States.
I’m not sure what to say other than this is really scary stuff – and that throwing incomprehensible amounts of money into Afghanistan makes even less sense given the risks to the global economy that Lachman lays out.
— Ben Katcher